Script for displaying headers. There are 4 pages in this exam. Be sure to complete all pages before submitting the exam. Page: 1 2 3 4 Multiple Choice Script to run spell checker. Time Remaining: 1. (TCO1) Financial statements are: ______________ (Points: 4) standard documents issued by outside consultants who are hired to analyze key operations of the business in financial terms. standard documents that tell us how well a business is performing and where it stands in financial terms. reports created by management that states it is responsible for the acts of the corporation. reports issued by outside consultants who are hired to analyze key operations of the business. 2. (TCO2) A company purchased inventory on account. This transaction increased assets and: (Points: 4) increased equity increased liabilities increased revenues decreased assets 3. (TCO1) Which principle states that assets acquired by the business should be recorded at their actual price? (Points: 4) cost principle. objectivity principle. reliability principle. stable dollar principle. 4. (TCO2) A company performed services for a customer on account. This transaction ___________________. (Points: 4)
decreased assets and decreased equity. increased assets and increased liabilities. increased revenue and decreased expenses. increased assets and increased revenues. 5. (TCO2) Which type of account is increased when a company records a debt? (Points: 4) expense retained earnings liability none of the above are correct. 6. (TCO2) The results of operations are reported on the ________. (Points: 4) statement of operation. statement of financial position. trial balance. statement of stockholders’ equity. 7. (TCO3) A company started the year with $400 of supplies. During the year the company purchased additional supplies costing $1,600. There were $800 of supplies on hand at the end of the year. An adjusted trial balance prepared at the end of the accounting period will show the which of the following
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